Lease-Option

Intermediate 🏠 Real Estate

Definition

A hybrid agreement where you rent with the option to buy, basically rent-to-own for people who can't decide.

Example Usage

We negotiated a lease-option that lets us rent for two years before deciding whether to purchase.

Origin

Modern real estate financing innovation from the 1980s

Fun Fact

Lease-options allow buyers to build equity while testing a property before committing to ownership.

Source: Alternative real estate transaction terminology

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